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US Prices Drop by Largest Amount in 56 Years

N8 v2.0

Not the sharpest tool in the shed
Oct 18, 2002
11,007
149
The Cleft of Venus
Whoa!



Prices Drop by Largest Amount in 56 Years
MARTIN CRUTSINGER, AP Economics Writer

WASHINGTON - A record plunge in the cost of gasoline pushed consumer prices down by the largest amount in 56 years in November while industrial production posted a solid gain.

The new government reports Thursday provided further evidence that the economy is shaking off the blows delivered by a string of devastating hurricanes.

The Labor Department reported that its closely watched Consumer Price Index dropped by 0.6 percent last month, the biggest decline since a 0.9 percent fall in July 1949. It reflected a record fall in gasoline prices, which have been retreating since they surged to above $3 per gallon right after Katrina hit.

Meanwhile, the Federal Reserve said output at the nation's factories, mines and utilities rose a solid 0.7 percent last month following a 1.3 percent rise in October. Industrial output had plunged by 1.6 percent in September, reflecting widespread shutdowns of oil refineries, chemical plants and other factories along the Gulf Coast.
 

Tenchiro

Attention K Mart Shoppers
Jul 19, 2002
5,407
0
New England
A record fall in gas prices doesn't mean much following a ercord surge in said prices.

Kind of like how Sears marks up prices and extra 30% and then acts like they are doing you a favor by offering 20% off.
 

binary visions

The voice of reason
Jun 13, 2002
21,670
433
NC
Amazon.com just posted a coupon code yesterday giving you 5% off.

If you look closely at the prices, though, they jacked up the eligible items by 5%. I had an item in my shopping cart from the previous day that was eligible and the price went up.

Makes people feel good, though.
 

blt2ride

Turbo Monkey
May 25, 2005
2,334
0
Chatsworth
The gas prices are still pretty high; however, they are about where they were before Hurricane Katrina--which is between $2.19-$2.30 here in So Cal. It's nothing to write home about, but it's A LOT better than the $3.15s we saw in August and September.
 

binary visions

The voice of reason
Jun 13, 2002
21,670
433
NC
LordOpie said:
It's like when I get an erection after swimming in ice water. It only seems a lot more impressive.
No, I don't think that's impressive by any stretch of the imagination. No matter what the situation.